Global oil prices climbed sharply on Tuesday, with Brent crude rising to its highest level in a month amid renewed military tensions between the United States and Iran over the Strait of Hormuz, a key global oil shipping route.
Gatekeepers News reports that Brent crude gained 4.19 percent to trade at $86.79 per barrel, its highest level since June 12, while the US benchmark, West Texas Intermediate (WTI), rose 3.16 percent to $80.61 per barrel.
The rally followed reports that the United States had reimposed a naval blockade on Iran, while renewed hostilities between Washington and Tehran heightened fears of disruptions to global energy supplies passing through the Strait of Hormuz.
On July 12, Iran announced it had closed the strategic waterway after its forces reportedly fired a naval cruise missile at a vessel it accused of navigating through an unauthorised route.
The latest escalation marks a reversal from developments a month earlier, when global crude prices fell to about $82 per barrel after the United States, Israel and Iran reached an agreement to end hostilities across multiple fronts in the Middle East, including Lebanon, and reopen the Strait of Hormuz.
The earlier decline in oil prices prompted criticism from Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC), which accused petroleum marketers of failing to adequately reflect lower global crude prices in domestic fuel prices.
The commission argued that reductions at the pump did not correspond with the significant drop in international crude oil prices.
In response, Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, said the Federal Government was engaging petroleum marketers and regulators to ensure that any sustained decline in global crude prices is more transparently reflected in pump prices across the country.
As part of those efforts, the Federal Government convened a meeting of oil and gas stakeholders on July 10 to discuss measures aimed at ensuring fair and transparent pricing of petroleum products nationwide.
